Home buying & selling contracts: understanding clauses

Buying a home (or selling one) is one of the most significant decisions in life. Amidst the excitement, it's essential to approach the process with a critical eye — understanding the intricacies of your buyer’s or seller’s contract is paramount. We’re going to explore the importance of clauses, their role in protecting you, and the necessity of legal comprehension in the homeowner journey. 

 

The importance of clauses. 


When examining a home contract, it's not uncommon to ask for modifications before finalising the deal. You’re entitled to do so, and your real estate agent may even advise it. 


Including specific clauses empowers you to address concerns and ensure inspections or necessary fixes are completed before ownership transfers. These may include inspections for structural integrity, termite assessments, or verification of council approvals (particularly critical in WA). 

 

The role of real estate agents. 


While you can propose clauses as a buyer, you can’t breach legal requirements. Real estate agents typically aid in safely incorporating these clauses into the contract, offering guidance on pertinent additions. Real estate companies commonly provide standard forms for additional clauses, streamlining the process. 


However, buyers often forgo legal counsel, relying solely on the agent's assistance. Agents, bound by ethical standards, should highlight crucial property aspects and propose standard conditions, such as ensuring the functionality of utilities and conducting structural assessments, but they don’t always. 


Make sure you know what you’re reading and agreeing to before you sign! 


You can add an extra layer of protection and scrutiny by seeking third-party legal advice on your contract. 


Understanding what you’re looking at is paramount as it’s common for misunderstandings may arise. For instance, a structural report only obligates fixes to structural defects, not cosmetic issues, and many people don’t know this until they’ve already signed. 

 

Legal considerations. 


Even if you’re an experienced home buyer or seller, understanding your contract's nuances is crucial because WA lacks a cooling-off period. This calls for thorough scrutiny before signing — after all, no two contracts are the same. Attempting to exit the contract by failing to secure financing is also prohibited. Once signed, buyers must diligently fulfill conditions to finalise the transaction. 

 

Understanding the risks. 


In navigating home contracts, a grasp of clauses and legal obligations is invaluable. Seeking legal counsel offers an added layer of assurance, especially for those unfamiliar with the intricacies of real estate law. Ultimately, informed decision-making is key to a successful home-buying journey. 


We can help with the tax implications and responsivities that comes with buying or selling property. To get started, contact us today

Need help with your accounting?

Find Out What We Do
July 14, 2025
What does a “comfortable” retirement mean to you? For some, it’s travel and lifestyle. For others, it’s simply having the bills paid on time without stress. Whatever your version of comfortable looks like — the key is planning. We’re here to help!
July 14, 2025
Selling property in Australia? Don’t forget your Clearance Certificate — it could SAVE you THOUSANDS at settlement. If you don’t have one, the buyer is legally required to withhold part of your payment — delaying and reducing what you receive. Applying is free and easy — and Ascent Accountants can help you get it sorte
July 14, 2025
If your business paid contractors during the last financial year — think tradies, cleaners, and more — you may need to lodge a Taxable Payments Annual Report (TPAR). Missing it (deadline: 18 August!) can lead to late penalties. Not sure if you need to lodge or what to incl
June 12, 2025
June is zooming by! Here’s another handy checklist for business owners—let’s get you sorted for EOFY and tick off those to-dos.
June 12, 2025
EOFY is almost here. Are you ready? Now’s the time to get your finances in order and maximise your tax return. Our latest guide covers top tax deductions, super contributions & co-contributions, SMSF must-dos, PAYG instalment tips and a 30 June checklist.
June 12, 2025
Whether you're a first-time landlord or managing multiple properties, understanding what you can claim at tax time can make a big difference to your bottom line. In our latest blog, we break down the most common (and often overlooked) deductions.
More Posts